The Gisborne Times. PUBLISHED EVERY MORNING. TUESDAY, OCTOBER 6, 1908. THE MONEY MARKET.

Gisborne Times, Volume XXVI, Issue 2314, 6 October 1908, Page 2

The Gisborne Times. PUBLISHED EVERY MORNING. TUESDAY, OCTOBER 6, 1908. THE MONEY MARKET.

Tho article published in another column in rcforenco to tho tightness of money is one that should bo read by all who tako an interest- in the present financial position of the country. No matter how unpalatable tho fact, wo have to admit that money has for somo time boon, and still is, so restricted in circulation as to seriously impede tho ordinary course of business. Tlio article in question gives tho views of a number of the most prominent business and public men in tho Dominion upon tho causes of ibis monetary shortage, and their various findings rnako very interesting ronding. There are many viewpoints that provide ample material for careful thought, but none more so than the concluding remarks of Mr. James Allen, who said, “the growing toiuloncy for years past to lean on borrowed money cannot bo considered other th.ni dangerous. It is no use crying ‘stinking fish,’ but it would be well if wo really believed in and practised somo self-reliance.” Tlio observation is well founded. Tho Government of tlio day has set tlio worst oxamplo of all by borrowing up to tho hilt in a. fashion that is almost reckless. With municipalities one of the most popular of recipes has been a- loan, loaving posterity to pay tho piper whilst tho private individual who pnys his way land restricts his financial ventures to reasonably sound investments is -looked upon as over-cautious. Boon prices have encouraged this spirit of speculation in tho people, and with land values constantly rising in sympathy with genoral prosperity there lias been littlo difficulty in speculators borrowing nil they needed. This spirt of land gambling was bound to prove fatal to the interests of the community ;in the long run, and the sharp drop in wool and hemp list year served to expose the weakness of the system the people had driftd into. Immediately the revenue decreased simultaneous with the shortage of money and it became painfully evident that a large section of the community had been living beyond its means and the pinch gradually made itself felt in all classes of trade. However, there is more profit at present -in discussing tho future than the past, and, in this connection, it is gratifying to noto tlie remarks of tlio Premier that- ho has reason to believe money will bo more plentiful next month than it lias been for some time. Sir Joseph Ward is inclined to be unduly optimistic—ludicrously so at times—but, it can, we hope, bo safely assumed that lie spoke with a full sense of responsibility when lie informed the “Post” reporter that at the beginning of November the supply of money would bo very much greater. Of course, it must not be assumed that tho return of money into circulation will necessarily lead to any great and permanent improvement in general business. The prosperity of the community depends, not upon the amount of money in circulation, but upon the production of tlie country. Last year was a moderately good season, though inclined to be droughty in parts, but prices were low. This year the price of wool appears likely to be littlo better than last year, but tho season lias been one of the finest for lambing throughout tlio Dominion that we have had for many years and this should go a long way towards compensating our farmers for the low values. Dairy produce, it- may lie remarked, is selling remarkably well. Therefore, anyone who carefully inquires into tlie position will be forced to admit that this country is, by reason of its productiveness, quite able to stand tho reverse consequent upon the reductions in values, and as soon as the money market relaxes sufficiently to enable our lending institutions to meet all legitimate demands the depression that has been existent should gradually bo removed.